KABR Group Secures $63M for Jersey City Asset

June 3, 2026

Finance New York News Northeast More Office

The financing backs a recently converted building near the Hudson waterfront.

Image of the six-story building at 124 Bay St. in Jersey City, N.J. — The six-story property includes office and retail space and dates back to 1901. *Image courtesy of Yardi Matrix*

KABR Group has secured a $63 million loan backed by a 147,318-square-foot creative office building in Jersey City, N.J., according to Yardi Matrix information. Lorimer Capital originated the loan.

The six-story property is at 124 Bay St. Also known as the Arts & Powerhouse Building, it is part of The Waterfront, an upscale neighborhood along the Hudson river.

The building is close to the Grove Street PATH station, as well as the Holland Tunnel, also 10 miles from Newark Liberty International Airport. Additionally, it is also within the city’s Powerhouse Arts District, a former industrial enclave in downtown Jersey City, located on the Hudson River waterfront and anchored by Nimbus Arts Center.

The Arts & Powerhouse Building, originally built in 1901 as a warehouse, last changed hands in 2016, when KABR Group and Kushner Cos. acquired it. The duo led a $30 million adaptive reuse transformation to office in 2024, with commercial leasing launching in March 2025.

The building now includes loft-style spaces with open layouts and floorplates between 8,881 and 27,199 square feet. It features two passenger elevators and 33,000 square feet of retail space. Current tenants include Spear Physical Therapy, One Medical, Rumble Boxing Gym and Danny Meyer’s Daily Provisions, among others.

A Greystone Capital Advisors team of President Drew Fletcher, Vice President Jesse Kopecky and Managing Director Bryan Grover negotiated on behalf of the borrowers, according to Commercial Observer.

New Jersey office fundamentals bounce back in 2026

The New Jersey office sector is gradually stabilizing, posting steady fundamentals, according to a recent Yardi Matrix report. The market’s asking rents stood at $34.58 per square foot in April—above the $31.91 per square foot national average and marking a 3.4 percent increase over the past 12 months.

The area vacancy rate clocked in at 16.1 percent in April—below the 17.6 percent national average and representing a 280-basis-point improvement over the past 12 months. New Jersey is among the U.S. metros with strong vacancy recoveries, in line with markets such as neighboring Manhattan (300 basis points) and nearby Boston (240 basis points), and on the heels of places like San Francisco (570 basis points) and Denver (470 basis points).